Lin told the Nets website earlier this week that he has yet to participate in full-contact drills as he rehabs the injury.
According to ESPN's Adrian Wojnarowski, the Brooklyn Nets agreed to trade Lin to the Hawks in exchange for a 2020 second-round pick (via Portland) and the rights to Isaia Cordinier, a 2016 second-round pick who has remained overseas.
It is unclear what else the Nets will receive in return. The deal will also trade future second-round draft picks.
Lin has a year and $12.5 million left on the contract he signed two summers ago.
Lin, who broke into the league with the 2010-11 Warriors where Schlenk was in Golden State's front office, suffered a season-ending ruptured patellar tendon in the Nets' opener a year ago.
Lin, headed to his seventh National Basketball Association team as he prepares to enter his ninth season, now joins a roster that includes two notable point guards, No. 5 overall pick Trae Young and veteran Dennis Schroder.
Since leaving the Knicks, Lin has played with the Houston Rockets, Los Angeles Lakers, the Charlotte Hornets and the Nets.
Faried, 28, played in 32 games (seven starts) for Denver last season, averaging 5.9 points and 4.8 rebounds.